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LV= on the Government response to the Freedom and Choice in Pensions consultation

Press release: 21/07/2014

Richard Rowney, Managing Director of LV= Life and Pensions on the Government response to the Freedom and Choice in Pensions consultation:

“LV= fully supports the Government’s decision for the guidance guarantee to be provided by independent organisations. We believe this will ensure that consumers have trust in the guidance process and are able to make fully-informed decisions across the whole of market. It will also provide consistency.

“Whilst guidance may be sufficient for individuals with pension funds up to a certain value, we believe that it is essential that, where appropriate, guidance encourages individuals to take regulated advice. We believe that many could benefit from advice as to how they structure their retirement income and we would welcome the introduction of a regulated advice voucher, funded through a levy on the financial services industry. This would provide a triage system that allows those individuals who want to, to seek further advice.

"We welcome the decision to continue to allow transfers from private sector and funded public sector defined benefit schemes to defined contribution schemes provided they have sought financial advice. For most defined benefit scheme members it will be right to remain within their scheme, but it is crucial that the freedom to transfer out of a defined benefit scheme is preserved. We believe that advice can significantly improve outcomes for those approaching and at retirement and this is an area where it will prove to be extremely valuable.

"Retirement is no longer an absolute event whereby someone hits 65 and leave the workplace forever. It's become a phased event and we expect to see demand for more products that reflect that. Changing the existing tax framework means the industry will be able to offer even greater consumer choice and create solutions that fit the needs of the new generation of retirees.”


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